N E W S R E L E A S E For information contact: Joni Morford, Communicore 714/721-8081 jmorford@communicore.com ORQUEST AND SPINE-TECH ANNOUNCE ALLIANCE TO DEVELOP MINIMALLY INVASIVE SPINAL FUSION SYSTEM FOR IMMEDIATE RELEASE......December 16, 1996......Mountain View, Calif......Orquest, Inc. and Spine-Tech, Inc. (NASDAQ: SPYN) today announced a strategic alliance to evaluate combining Orquest's Healos¨, a unique bone grafting material, with Spine-Tech's BAK¨ line of interbody-fusion devices. This collaboration will develop the use of Healos in BAK devices as an alternative to the use of autograft (the patient's own bone) in BAK devices. Autograft is the most common bone grafting material and is used in over 80 percent of all bone grafting procedures. Harvesting autograft, however, lengthens the time and increases the cost of surgery and can cause hip pain, a longer hospital stay, and post-operative disability. Orquest developed Healos to be a better-handling, safe, and cost-effective alternative to autograft. Healos is a patented, fully resorbable and biocompatible matrix that facilitates the natural bone healing process. It is a porous and sponge- like matrix of collagen mineralized with resorbable hydroxyapatite that provides the "scaffold" which allows for bone formation. Clinical trials evaluating Healos in spinal fusions are currently in progress in Europe. "We are excited about the opportunities created by combining two leading technologies that provide the surgeon and patient with the most advanced product for spinal fusions," said S. Mitchell Seyedin, Ph.D., Founder, Chairman of the Board, and Chief Scientific Officer of Orquest. The BAK Interbody-Fusion System is comprised of hollow, threaded, titanium alloy cylinders which can be implanted in the spaces between two or three adjoining vertebrae in the lumbar spine, as well as the instruments used to implant the device. Spine-Tech's BAK Interbody Fusion System received clearance for marketing from the FDA on September 20, 1996. Spine-Tech will file an IDE shortly for clinical evaluation of Healos in BAK cages. "Our pioneering technology for less invasive spine surgery will be further enhanced by inclusion of Healos, eliminating the need for a second surgery to harvest the patient's own bone grafting material," said David W. Stasson, President and CEO of Spine-Tech. Orquest, Inc., a private company, was founded in 1994 to develop, manufacture, and commercialize cost-effective bioengineered matrices for the regeneration of bone and cartilage tissues in targeted indications. Orquest currently has two orthopedic products in development: Healos, an implantable matrix and a synthetic bone graft alternative, and Ossigelª, an injectable matrix for accelerated fracture healing. Spine-Tech, Inc. designs, develops, manufactures, and markets spinal implants and instruments for the surgical treatment of spinal conditions. Spine-Tech, Inc. is the pioneer of interbody-fusion devices for spinal fusions. End of document.